Most people really don’t understand much about bankruptcy and this lack of knowledge can sometimes lead them to making the wrong decisions concerning this. Some feel that if they are not eligible for the Chapter 7 bankruptcy and have to rely on the Chapter 13 option, this is not going to be very beneficial to them.
Often they are under the assumption that if they were able to utilize the Chapter 7 option that they would have all their debts wiped clean and they would not have lost anything. This is often not the case, and this is where the Chapter 13 bankruptcy may be of greater benefit. It allows the individual who is in financial trouble a workable way of being able to keep their assets and clear their debt at the same time.
There is always a risk that in the Chapter 7 an individual could lose their home. Chapter 7 provides a means of being able to catch up on arrears in the mortgage. The same may be applicable for car payments.
Quite often those who are eligible for chapter 13 bankruptcy once it is all been put in place are quite happy that they were not able or didn’t apply for the chapter 7 option. Ideally any individual opting for bankruptcy should discuss their possible choices with a bankruptcy attorney in Dayton OH. This way it avoids confusion and waste of time when it comes to making the right choice.